Layoffs announced Tuesday by two large U.S.-based multinational corporations could be a harbinger of things to come unless global demand picks up and the flagging domestic economy gains momentum.
Chemical giant DuPont (DD) said in its third-quarter earnings report that it will lay off about 1,500 workers – or about 2% of its global workforce – to offset lower revenues brought about by tepid demand worldwide in the construction and renewable energy sectors.
DuPont's shares were down $4.36, or 8.76%, at $45.40 in midday trading.
Aerospace company United Technologies (UTX), also facing lower revenues, said it planned to increase its full-year restructuring budget by 20% to $600 million due to reduced demand for its military equipment. The company didn't say how many jobs might be affected.